Correlation Between Hainan Airlines and Agricultural Bank
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By analyzing existing cross correlation between Hainan Airlines Co and Agricultural Bank of, you can compare the effects of market volatilities on Hainan Airlines and Agricultural Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hainan Airlines with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Agricultural Bank.
Diversification Opportunities for Hainan Airlines and Agricultural Bank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Agricultural is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Hainan Airlines is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hainan Airlines Co are associated (or correlated) with Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Agricultural Bank go up and down completely randomly.
Pair Corralation between Hainan Airlines and Agricultural Bank
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 1.73 times less return on investment than Agricultural Bank. In addition to that, Hainan Airlines is 2.36 times more volatile than Agricultural Bank of. It trades about 0.03 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of volatility. If you would invest 268.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 237.00 from holding Agricultural Bank of or generate 88.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hainan Airlines Co vs. Agricultural Bank of
Performance |
| Timeline |
| Hainan Airlines |
| Agricultural Bank |
Hainan Airlines and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Agricultural Bank
The main advantage of trading using opposite Hainan Airlines and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Agricultural Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Bank of China | Hainan Airlines vs. PetroChina Co Ltd |
| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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